Yukon Property Consultants, LLC

Yukon Property Consultants knows that you have questions. We are more than happy to answer those for you. Below is a list of our most frequently asked questions.

Why would anyone give up property rights?

A conservation easement donor is not giving away property rights to someone else. He is extinguishing them. He is controlling the future of his land, not losing control of his land. Property owners are motivated by aesthetic, ethical, or practical reasons. Financial incentives often take a back seat to the personal goals of the landowner.

Does donating an easement make my land attractive for condemnation?

Some people fear their land will be more appealing for public condemnation proceedings if its market price is lowered by a conservation easement. The opposite may be true, a government agency must pay the fair market value of the easement and the property. The land trust is a partner with the landowner in any potential proceedings.

Will strangers be walking on my property?

Many easements are scenic view contracts. The public has no access other than visual – in other words, to see the property from a distance. The land trust has the right to visit the property for oversight of the easement. It notifies the owner before entering the property, typically once or twice a year.

Can I sell an easement instead of donating it?

Most easements are donated. Land trusts typically have limited funding sources. That said, some grant funds are available for properties with high conservation value. For example, the North Carolina Clean Water Waste Management Trust Fund has been an important resource for obtaining funds to purchase easements on properties that protect watershed areas, or to buy those properties outright. Compare all available conservation financial strategies -- income tax deductions, credits, gift annuities, and bargain sales for example – with the after contingencies, after taxes offer from a developer.

Does donating an easement increase my risk of being audited?

The Internal Revenue Service has been reviewing charitable gifts across the board. The IRS issued Letter 2004-41 with a warning to appraisers and land trusts to be accurate in their valuations and diligent in conservation purpose. In recent conversations, IRS officials indicated they are aware that the majority of donations are legitimate; they are focusing not on all easements, but rather on transactions that are questionable.

How do I take advantage of the tax benefits if my income is not very high?

Easements can be donated on portions of land over time or in phases -- increasing the level of restriction and value of the easement to extend the number of years deductions can be taken. Bargain sales are another tool often used for conservation-minded owners with lower incomes. Gift annuities and remainder interests may be attractive in some instances. South Carolina property owners can sell their conservation tax credits.

I just donated a large easement to the land trust. How can they now suggest that I also make a financial donation to the Stewardship Fund?

You have given a responsibility to the land trust: To watch over your land and make sure it is protected, even after you’re gone. The land trust partners with you to achieve your goal of preserving the property, but there is a cost associated with doing the work. That’s why a donation of an easement and a stewardship plan go hand in hand.